Vaughan Tax Lawyer in Concord for CRA Audits, GST/HST and Tax Disputes

Concord and the surrounding area along Highway 7 and Highway 400 are home to a large concentration of construction companies, contractors, trades, manufacturers and suppliers. The construction sector receives particular attention from the CRA, which has long identified it as an area of concern for unreported income and the underground economy. Businesses whose primary activity is construction must generally file T5018 information returns reporting payments made to subcontractors, which gives the CRA a direct way to compare what contractors were paid with what they reported.

We represent general contractors, subcontractors and trades in audits of income, expenses and GST/HST. A recurring issue is the denial of input tax credits and expense deductions where the CRA alleges that a subcontractor's invoices were not genuine, sometimes called accommodation invoices. Even businesses that paid real subcontractors in good faith can be reassessed if they cannot prove who did the work and that the supplier was properly registered. We help clients assemble the evidence, including contracts, site records, payment trails and supplier registration checks, to defend these claims.

Vaughan has seen extensive new residential construction, from new subdivisions in Kleinburg and Maple to high-rise towers around the Vaughan Metropolitan Centre. That activity creates distinct tax issues for buyers, investors and builders.

For buyers, the most common dispute is the clawback of the GST/HST new housing rebate when the CRA concludes the home was not purchased as a primary place of residence. Eligible first-time buyers of new homes may also qualify for the federal First-Time Home Buyers' GST rebate of up to $50,000, which became law in March 2026. For investors, the residential property flipping rule taxes profits on homes held for less than 365 days as business income unless a life-event exemption applies, and pre-construction assignments often attract both income tax and HST.

Builders, including individuals who build or substantially renovate a home to sell or rent, can be subject to the HST self-supply rules and must charge HST on sales of new homes. Custom home builders and small developers frequently face CRA reviews of whether they were in the business of building. We advise before transactions close and defend positions when the CRA reassesses.

Many Vaughan businesses are family owned and operated, often across two or more generations. Passing a business to the next generation raises significant tax questions: how to use an estate freeze to cap the parents' tax on death, whether shares qualify for the lifetime capital gains exemption, now $1.25 million for qualified small business corporation shares, how the tax on split income rules affect dividends paid to family members, and how to avoid double tax on private company shares at death.

We help family business owners plan these transitions in a way that is tax-efficient and documented to withstand CRA review, coordinating with their accountants, financial advisers and corporate lawyers.

When tax debt builds up, the CRA can garnish bank accounts and wages, register liens against property and, for businesses, assess directors personally for unremitted payroll deductions and GST/HST. Unlike most income tax reassessments, GST/HST and payroll amounts can be collected even while you dispute them, which makes early action especially important for contractors and other businesses.

We negotiate with CRA Collections, challenge assessments that are wrong, pursue cancellation of penalties and interest under the taxpayer relief provisions, and coordinate with licensed insolvency trustees where a proposal or bankruptcy is the best option.

Identify the type of letter and note the deadline. Requests for information and audit letters often allow 30 days, a notice of reassessment generally gives you 90 days to file a Notice of Objection, and a collections notice means the CRA is pursuing payment. Do not ignore the letter, and do not send explanations or documents until you understand what the CRA is looking for.

Gather your returns, bank statements, invoices and contracts for the years involved, then contact us. Iqbal Law brings more than 20 years of experience in Canadian tax disputes, and our communications with you are protected by solicitor-client privilege.